Calculate the net present value of the proposed equipment

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Question - Please help solve the net present value - The Pronghorn Company is planning to purchase $493,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment:

Year Projected Cash Flows

1 $248,000

2 135,000

3 102,000

4 59,300

5 70,000

6 48,200

7 47,200

Total $709,700

Required - Calculate the net present value of the proposed equipment purchase. Pronghorn uses a 11% discount rate.

Reference no: EM133006784

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